Future of the SIA

SIA Conference

On the 26th of October Pro Active Safety Training's Director attended the the SIA conference in East Kilbride hosted by Bill Butler, the Chief Executive of the Security Industry Authority. In the  conference focus was on the impact of the proposed changes on busnesses, individuals, and the Approved Contractor Status (ACS) scheme.

The government, through the SIA, outlined that they would be introducing compulsory licensing for all those businesses involved in security provision.  This would of course potentially generate additional revenue for the government.  The government will further reduce their costs, by streamlining the internal processes and devolving responsibility back to the newly licensed business.

What this means to you

What this means in reality, is all newcomers to the industry would have to apply to the SIA via a licensed business or a mediated access partner (MAP), such as the Post Office.  Consequently the SIA would no longer be the first point of contact for applicants, once they had commenced the licensing process.  From that point the applicant would have to go through either the employer or the MAP.  This will inevitably result in an administrative charge being required for this service.  The going rate for this type of service can be anything between £25 and £50 plus VAT.  If going through these organisations was mandatory the charge may be higher.  This cost will have to sit on top of the licence fee.  This may result in you paying more rather than less..

Potential for abuse

Whilst there are undoubtedly many professional companies who would provide a superb service; there are far too many who will let the system down.  It is already common practice for some security companies to deduct all their own running costs (licence, insurance, uniform, training, etc) from the individuals weekly wage.  They achieve this through the cynical manipulation of the individual employees general lack of knowledge of their legal rights and responsibilities.  This allows these companies to create a false market, which depresses wages, impacts on public safety, and makes responsible companies look bad.  Hence the need for business licensing to create a level playing field.

Good news for renewals

The good news is the proposals for the renewal process  should should at least make things much simpler and quicker.  The new legislation will allow the SIA to change the way it does business.  At present a renewal is in effect a reapplication, which makes things overly complicated.  The new legislation will also mean they can also actually change the way it gathers evidence on a form. (At present, they can legally, only use the existing form. The other notable benefit will the use of new and emerging technolgy to deliver a better service.  Finally it is expected that your badge (proof of licence token) will need to have the photo renewed every 5 years.

Over reliance on intelligence

The main concern is the proposals rely far too much on intelligence-led risk assessment models as a mechanism for enforcement.  At present the proposed system is open to abuse, and therefore it will be abused.  One of the biggest flaws in the current system is the lack of incentive for anyone to report anyone for malpractice throughout the licensing process.   At present there are no details as to how any of the proposals will be enforced in the future, and how that will impact on public safety.

The future of the SIA

That feeling was crystallised through the formation of The Security Alliance (now The Security Regulation Alliance).

In October 2010, the Government announced a “phased transition to a new regulatory regime” for the private security industry. This factsheet outlines the latest proposals.

Formal proposals will go out to public consultation in 2012 and will be subject to final approval from the Home Office - future regulation in Scotland and Northern Ireland will be subject to decision by the devolved administrations. A separate consultation on the position of future regulation in Northern Ireland will be undertaken by the Department of Justice; the SIA's draft plan will form part of this consultation.

What’s happening to the SIA?

At the moment it’s business as usual and there will be no major changes to SIA regulation or the Approved Contractor Scheme before the London Olympics 2012.

Who will regulate the private security industry in the future?

The Government intends to pass legislation in order to set up a new regulatory body, independent of state control. Legislation is expected to be passed in late 2012. It is suggested that the new body should retain ownership of the name SIA to recognise and protect industry investment in the brand.

The Board of the new body is likely to be made up of an independent Chair, other independent members, and representatives from the industry, the Home Office, Scotland and Northern Ireland administrations.

So what’s the difference between the current regime and the future proposals?

The big difference is that the regulator will license businesses operating in designated areas of the private security industry. It will be a criminal offence for a business to provide a security service – no matter how small a part of their business the service is - unless the business is licensed.

To be licensed, businesses will need to demonstrate that they meet the licensing criteria and comply with the licensing terms and conditions which will include conformance with the relevant British Standards. There will be a single, generic security business licence.

The new body will also maintain a register of individuals authorised to undertake regulated activity within the private security industry. The terms and conditions of business licensing will include a requirement for the business to ensure a registration process is carried out for employees that will confirm their identity, address history, right to work, qualifications etc.

Self-employed workers who have no contract with a buyer or deploy only themselves under contract, will not need a business licence – just an individual registration. There will be special considerations for small businesses.

What else will the new body do?

The regulator will set and ensure registration standards for individuals and will run an online register, but the regulator will not manage the application process. Individuals will be able to access the registration system via a web portal to enter/update their details, but will need to complete their registration through authorised businesses and other partners – potentially the Post Office. The regulator will set the standards for assessing individuals, and apply the standards for qualifications set by an industry-led skills organisation.

The regulator will still have powers to enforce the law and will still work closely with partners such as the police.

How much will it cost?

Businesses will pay a licence application fee and an annual subscription fee.

Individuals will pay a registration application fee followed by annual subscriptions – there will be no need to renew a licence. Our plans are that when the new system is introduced credit will be given for any time remaining on an existing licence. For example, if your licence still has one year to run you will be transferred to the new system for one year without incurring any further cost.

The rates have yet to be determined, but they will be worked out in consultation with the industry. The cost for individual registration is expected to be lower than the current levels.

What will happen to the ACS?

No significant change is expected until Business Licensing is established. The industry has invested a great deal of time and effort in the ACS, and buyers (including many government organisations) specify ACS approval. Therefore, there is an expectation that an approval scheme will continue and existing approved contractors will be well placed to participate in this.

What happens during the move to a new system?

Licensed individuals will automatically be entered on the new register. For businesses, we are suggesting that the current ACS criteria should be divided into fit and proper criteria, and quality criteria. The fit and proper criteria, including British Standards, must be met to gain a compulsory business licence. The quality criteria could be met voluntarily to gain a recognised industry hallmark. Licensing requirements will be published and there will be a period during which businesses will need to meet requirements and apply for a licence if they want to continue to trade. The offence date will be after the end of March 2014.

What do I do now?

Nothing. Until you are notified by the SIA, everything remains the same – regulation by the SIA is still in place and must be adhered to. We will inform individuals and businesses what needs to be done nearer the time.

Meanwhile, visit our website www.sia.homeoffice.gov.uk/future, find us on Facebook by searching for Security Industry Authority or follow us on Twitter by searching for SIAuk.

For more information on the conference go to the SIA website where you can read all the presentations.